Harmony Gold Posts Record Profit on Higher Gold Prices

South Africa's largest gold producer, Harmony Gold (HARJ.J), reported an 87% increase in annual profit due to higher gold prices that offset lower output and grades. The company posted headline earnings per share of 43.63 rand ($2.73) for the year ended June 30, up from 23.37 rand in the prior year.

Harmony benefited from a 35% increase in the average gold price during the year, which helped soften the impact of lower gold output that fell by 3% to 1.43 million ounces from the previous financial year. The company has forecast even lower gold output between 1.3 and 1.4 million ounces for the current financial year.

Harmony paid an annual dividend of 7.50 rand per share, nearly five times last year's payout. The company diversified into copper in recent years to take advantage of growing demand for the metal amid a global shift to cleaner energy.